Shenzhen-based CITIC Securities will use the Apama platform to
create execution algorithms that can operate on China’s domestic markets. The
algos include pre-packaged traditional participation and benchmark algos such as
volume-weighted average price, time-weighted average price and
percentage of volume. They also include more advanced strategies that have been
adapted according to buy-side client requests, such as implementation
shortfall.

“Order volumes in China are increasing,” Richard
Bentley, industry vice president, capital markets at Progress Software, told theTRADEnews.com. “CITIC
wanted a platform that lets them provide a suite of standard and modified algos
for sophisticated trading firms. It was very important to have that
customisable element – and that’s what this platform provides.”

Bentley added that customised algos are particularly
useful in markets such as China, which have a different liquidity profile from
developed markets such as the US – leading to potentially greater market impact
unless firms can find an automated means to safely enter large orders into the
market.

Progress Software acquired Apama, formerly an independent
complex event processing specialist, in 2005. The division initially focused on
the US and European markets, before turning its attention to the BRIC
economies. Aside from its offering in China, Bentley estimates that the company
has acquired some 25 customers in Brazil within the last
three years.